)
The state Energy department has scrapped its pact with Vijayaa Ferro and Power Private Limited for setting up of a 120 Mw thermal power plant in Kalahandi district on the ground of inordinate delay in implementation of the project. The independent power producer (IPP) had signed MoU (memorandum of understanding) with the Odisha government in April 2010 for establishment of 120 (4x30) Mw coal-fired power plant at a cost of Rs 550 crore.
The power producer had also entered into PPA ( power purchase agreement) with state-owned bulk power purchaser, Gridco in 2011 for selling of 12 to14 per cent power produced by it at variable cost.
Even after expiry of the MoU in April 2013, the project proponent had not filed any proposal for extension of the pact with the state government. It may be noted, in the review meeting on progress of IPPs, taken by the energy minister on October 6, 2012, no representative of Vijayaa Ferro and Power had turned up.
“As no interest is shown by the developer after expiry of MoU, the project proponent was issued show case notice on February 1, 2014 asking to submit progress update of the project by February 15, 2014. But no response was received from the developer,” C P Mohanty , additional secretary, state Energy department wrote to Chairman cum Managing Director (CMD) of Industrial Investment Promotion Corporation of Odisha, Odisha Industrial Infrastructure Development Corporation (Idco) and Gridco.
“Government after careful examination have been pleased to drop the proposal of the company for setting up of 120 (4x30) Mw thermal power plant at Turlakahamar, Kesinga in Kalahnadi district,” Mohanty said in the letter.
Vijayaa Ferro and Power Private Limited is one of the 29 IPPs with whom the state government has signed MoUs that projected a combined generation capacity of around 37,000 Mw. The state’s share from these projects was pegged at about 6,000 Mw.
Out of the MoU singed companies, Vedanta Resources owned Sterlite Energy is the first IPP to have gone into production. The company has commissioned its 2,400 Mw plant at Burkhamunda near Jharsuguda. Similarly, GMR Energy has commissioned three units of 350 Mw each out of its proposed 1,400 Mw project at Kamalanga in Dhenkanal district.
